The Pros And Cons Of Binding Arbitration
Michael Babboni
Personal Injury
When it is time to pursue a settlement for your injuries, you will have many options in front of you. One of the most common options is binding arbitration. Binding arbitration is a type of settlement negotiation between two parties. It is a method of dispute resolution that avoids court, but is as legally binding as a judgment. If you’ve been injured in an accident you may want to consider binding arbitration as an option for your settlement. Here are the pros and cons of binding arbitration so you can decide if this method of resolution is right for you:Pro: Binding Arbitration Saves Money
Unlike the court process, the arbitration process does not require the time consuming and expensive period of discovery to prove your claim. There are also no associated court fees, arbitration can save you a lot of money.
Con: Binding Arbitration Still Costs Money
Even though the costs are less than court fees, arbitration can still cost money. There are some associated administration fees which range depending on the length of the case and potential settlement amount.
Pro: Binding Arbitration Saves Times
Taking an accident claim to court can take years depending on the complexities of the issue. Arbitration meetings can be set up right away and can lead to a faster settlement. On average an arbitration date occurs 30 days from the initial request.
Con: Binding Arbitration Does Not Have Summary Judgments
In cases where you go to court for your accident claim, you may petition to have certain parts of the case decided on or thrown out prior to court. In arbitration, you will have to go over all of these details which can be time-consuming depending on your circumstances.
Pro: Arbitration Hearings Are Private
Arbitration hearings are not part of a public record, so all parties can maintain their privacy during the settlement process. So if there are details about the accident or your injuries that you would like to keep confidential, arbitration is a good option.
Con: No Jury Of your Peers
Arbitration does not have juries, which are a fundamental American right for a reason. In arbitration the arbiter acts as both judge and jury, which may left you feeling unheard and unfairly treated.
Pro: Arbitration Is Simpler Than Going To Court
Litigation of claims requires a ton of paperwork and expert understanding of the legal process. Arbitration on the other hand does not require all this paperwork, evidence, and legal maneuvering. It is a much more straightforward and easy to understand process.
Con: Arbitration May Require Travel
If you are going through the arbitration process with a company, they may require arbitration to take place out of state. This travel can be difficult to maneuver, especially when you are dealing with an injury. This also complicated the legal processes when dealing with arbitration in a different state from the incident.
Pro: Binding Arbitration Is Final
If you really want to finalize your settlement so it doesn’t drag out any further, binding arbitration is a great option for you. Once you agree on the terms, the case is complete and you can begin to move on with your life.
Con: There Is No Appeal Process
Once you’ve settled on an agreement, it is legally binding. In court cases, if you don’t like the ruling, you can start the process for an appeal. You can also add new evidence and support to get a better judgment than what you first received. These are not options available in binding arbitration agreements.
Ultimately, whether or not you choose to go with binding arbitration for your injury claim really depends on your circumstances. Since there are both pros and cons to binding arbitration, your best bet is to speak with a qualified personal injury attorney like Michael Babboni. He can help advise you on whether or not binding arbitration is the right choice in your case. Call us today at The St. Pete Lawyer to learn more.